Car insurance market fraudulent?
Discussion
http://www.bbc.co.uk/news/business-18268650
The office of fair trading seems to think so.
We are utterly utterly ripped off in this country. The insurance industry is a joke.
The office of fair trading seems to think so.
We are utterly utterly ripped off in this country. The insurance industry is a joke.
agreed. I have had numerous dealings where I am the one who is totally legal and I am the one that ends up out of pocket after non -fault incident.
I hate the fact the law dictates insurance is necessary but no law onto how much they can charge, when one type of insurance fails (ie home/ flood or peter griffin's volcano insurance) they just increase car insurance as everyone is law bound to have it. Its wrong
I hate the fact the law dictates insurance is necessary but no law onto how much they can charge, when one type of insurance fails (ie home/ flood or peter griffin's volcano insurance) they just increase car insurance as everyone is law bound to have it. Its wrong
Add in the fact that most insurers do not handle claims in house any more, and that personal injury claims are going through the roof..
Its the ambulance chasers and claims handling companies that are forcing the contsant increases in premiums due to the way the conduct their business.... which is then billed to the insurance co... including a BIG profit..... so a claim which would have been say £500 is now inflated to £2000 due to admin and hire charges....
Motor Insurance.... the BIGGEST leagalised rip off since fuel duty.....
Its the ambulance chasers and claims handling companies that are forcing the contsant increases in premiums due to the way the conduct their business.... which is then billed to the insurance co... including a BIG profit..... so a claim which would have been say £500 is now inflated to £2000 due to admin and hire charges....
Motor Insurance.... the BIGGEST leagalised rip off since fuel duty.....
The biggest conflict of interest is Thatcham
Thatcham was set up by and is run by the Insurance industry and inspects all cars to establish their Insurance group rating.
The higher the resulting group the more the insurance industry gets to charge you, the owner.
Thatcham also sets out the times, methodology and thereby the costs of vehicle repairs.
The lower the times and costs the less the insurance industry pays out.
Thatcham makes the motor industry jump through hoops to achieve the lowest possible group rating.
Locking wheel bolts, etched windows etc and the manufacturers pass all that cost on to the buyer.
As for monopolies, there is only one "Thatcham" they have everyone by the balls.Thatcham has no competition.
Upset Thatcham and you get a s
t group rating and you can kiss goodbye to sales of cars.
Thatcham was set up by and is run by the Insurance industry and inspects all cars to establish their Insurance group rating.
The higher the resulting group the more the insurance industry gets to charge you, the owner.
Thatcham also sets out the times, methodology and thereby the costs of vehicle repairs.
The lower the times and costs the less the insurance industry pays out.
Thatcham makes the motor industry jump through hoops to achieve the lowest possible group rating.
Locking wheel bolts, etched windows etc and the manufacturers pass all that cost on to the buyer.
As for monopolies, there is only one "Thatcham" they have everyone by the balls.Thatcham has no competition.
Upset Thatcham and you get a s
t group rating and you can kiss goodbye to sales of cars.I have two dogs and I can assure you that it's the same with pet insurance. Basically vets don't want to know unless you have insurance and 3 stitches at my local medivet co was 600 quid.
Both dogs uninsured now, due to everyone getting greedy FFS
Both dogs uninsured now, due to everyone getting greedy FFS
Edited by frosted on Wednesday 6th June 23:14
jbi said:
http://www.bbc.co.uk/news/business-18268650
The office of fair trading seems to think so.
We are utterly utterly ripped off in this country. The insurance industry is a joke.
Where does that article say that the OFT think that the car insurance market if fraudulent? The office of fair trading seems to think so.
We are utterly utterly ripped off in this country. The insurance industry is a joke.
jbi said:
fandango_c said:
Where does that article say that the OFT think that the car insurance market if fraudulent?
would it be under investigation if it was believed otherwise?Read the article that you posted a link to!
fandango_c said:
The article states why the car insurance market is being investigated and it's not because the OFT thinks it is fraudulent.
Read the article that you posted a link to!
should I change the thread title to "dysfunctional"? Read the article that you posted a link to!
I think we are all smart enough to read between the lines.
fandango_c said:
Dysfunctional does not mean fraudulent. I think that most of us are smart enough to understand that.
artificially inflated premiums an repair costs prompting the investigation by the competition commission does not strike you as an investigation into large scale fraud?It's a similar situation where certain large supermarkets were found guilty of price fixing/driving up the cost of milk.
jbi said:
artificially inflated premiums an repair costs prompting the investigation by the competition commission does not strike you as an investigation into large scale fraud?
It's a similar situation where certain large supermarkets were found guilty of price fixing/driving up the cost of milk.
No, there's no mention of intentional deception. I can't see how this situation is similar to price fixing.It's a similar situation where certain large supermarkets were found guilty of price fixing/driving up the cost of milk.
Insurance is a zero sum game and very little profit is made on car insurance.
fandango_c said:
No, there's no mention of intentional deception. I can't see how this situation is similar to price fixing.
Insurance is a zero sum game and very little profit is made on car insurance.
can you shed some light upon why British premiums are some of the highest in the world despite us having the safest roads in the world?Insurance is a zero sum game and very little profit is made on car insurance.
jbi said:
artificially inflated premiums an repair costs prompting the investigation by the competition commission does not strike you as an investigation into large scale fraud?
It's a similar situation where certain large supermarkets were found guilty of price fixing/driving up the cost of milk.
Hopefully they'll have more success than that example. It's a similar situation where certain large supermarkets were found guilty of price fixing/driving up the cost of milk.
http://www.telegraph.co.uk/finance/newsbysector/re...
No suggestion of fraud there though.
fandango_c said:
Premiums size reflects the claim size.
The office of fair trading suggests that the market is "unhealthy" and it seems fairly obvious something is amiss.So where in the chain are things going wrong?
You claim the premiums reflect the claim size... so considering the relatively small amount of claims, is the problem in that the individual claims are artificially high?
Since accident figures are low for this country, is the cost of individual accident inflated beyond reason?
You seem to be someone with a little bit of knowledge of the industry so please in your own words enlighten us as to what the office of fair trading may have an issue with.
jbi said:
The office of fair trading suggests that the market is "unhealthy" and it seems fairly obvious something is amiss.
So where in the chain is things going wrong?
You claim the premiums reflect the claim size... so is it just that claims artificially high or is there more to this.
Since accident figures are low for this country, is the cost of individual accident inflated beyond reason?
You seem to be someone with a little bit of knowledge of the industry so please in your own words enlighten us as to what the office of fair trading may have an issue with.
I don't work in insurance, but not in general insurance.So where in the chain is things going wrong?
You claim the premiums reflect the claim size... so is it just that claims artificially high or is there more to this.
Since accident figures are low for this country, is the cost of individual accident inflated beyond reason?
You seem to be someone with a little bit of knowledge of the industry so please in your own words enlighten us as to what the office of fair trading may have an issue with.
Increased whiplash and personal injury claims is apparently one of the the reasons why claims are up a lot.
This article is worth a read, it gives more details than your link:
http://www.independent.co.uk/money/insurance/simon...
Whilst I don't agree with what's alleged to be going on, it doesn't seem fraudulent.
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